Adding up the _____ and the _____ will net out the balance of payments to zero.

Question

Quizplus · Accepted Answer

The balance of payments consists of the current account (which includes the trade balance) and the financial account (which includes capital movements). A trade deficit means the country imports more than it exports, and a capital surplus (or financial account surplus) means the country receives more money through investments and other financial transfers than it sends out. These two can offset each other, balancing the overall balance of payments to zero.

Adding Up the _____ and the _____ Will Net Out

Adding Up the _ and the _ Will Net Out